Another Google Trends Analysis

About 5 years ago, I posted (under a now Reddit-shadow-banned account) to r/Bitcoin Image #4. (I have a link, but it says the post was removed by Reddit’s filters, doesn’t matter). I basically have the same theory, now, as I did 5 years ago, but now I have some numbers and projections. Also, this subreddit only allows posts to have 1 image, so I refer to 4 images which are all included in this single giant image.

If you plot the Price : Google Trends ratio (Google Trends “Bitcoin” search term), you’ll get a plot that looks like Image #3 in this post. That chart demonstrates Bitcoin’s price grows according to a power law even after correcting for the Google Trends data. In other words, there is a theoretical power law growth for constant “interest level” in Bitcoin, as measured by Google Trends.

Now, assuming that this price:GTrends ratio maintains its current level, and maintains its current growth trend, then Image #1 shows the price action that would occur for changes in the Google Trends data shown in Image #2. The Google Trends chart includes some trend lines, most notably the descending resistance line. The data indicates that Bitcoin is currently about as “interesting” as it was in mid-2017, and maybe a bit below the average of the last 4 years.

I believe that any kind of significant event that is directly or indirectly positive for Bitcoin could be the catalyst that sparks another parabolic increase in price. Maybe the event needs to be much more significant than mere positive price action, like what happened in 2017—back then, it was merely the price action that caught everybody’s attention, and the feature on the Big Bang Theory TV show certainly helped. Now, it will take a lot more than featuring in a TV show. Perhaps the passage of a series of bills in Congress, and signed into law by President Trump? I don’t know. But the data clearly shows the kind of enormous price increase that could occur if there were a strong enough catalyst.